85R13049 JXC-F

By: Larson H.B. No. 2943

A BILL TO BE ENTITLED

AN ACT

relating to the use of money in the state water pollution control revolving fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 15.601(a), Water Code, is amended to read as follows:

(a) The state water pollution control revolving fund shall be administered by the board under this subchapter and rules adopted by the board. The fund shall be used to provide financial assistance to persons for projects eligible for assistance under Section 603(c) of the Federal Water Pollution Control Act (33 U.S.C. Section 1383(c)), including [political subdivisions for construction of treatment works and to persons for] nonpoint source pollution control and abatement and water quality control projects described by Sections [under Section] 15.603(h) and (h-1) of this code, in accordance with the capitalization grant program established under the Federal Water Pollution Control Act (33 U.S.C. Section 1251 et seq.).

SECTION 2. Section 15.603, Water Code, is amended by amending Subsection (a) and adding Subsection (h-1) to read as follows:

(a) The revolving fund is held separately from other funds by the board outside the State Treasury to provide financial assistance to persons for projects eligible for assistance under Section 603(c) of the federal act (33 U.S.C. Section 1383(c)), including [political subdivisions for construction of treatment works and to persons for estuary management projects and for] nonpoint source pollution control and abatement and water quality control projects under Subsections [Subsection] (h) and (h-1) of this section.

(h-1) In conjunction with or separate from the account described by Subsection (h), the board by rule shall establish a program to promote the acquisition by eligible applicants of conservation easements, as defined by Section 183.001, Natural Resources Code. Acquisitions made through the program must have a demonstrable impact on water quality control, as determined by the board. The board shall ensure that the amounts of any funds used for such a program are consistent with maintaining the perpetuity of the revolving fund.

SECTION 3. Section 15.604, Water Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows:

(a) The board may use the revolving fund for financial assistance only as provided by the federal act:

(1) to make loans, on the conditions that:

(A) the loan is [those loans are] made at or below market interest rates, including an interest-free loan [loans], at a term [terms] not to exceed the lesser of 30 years or the projected useful life, as determined by the board, of the project to be financed with the proceeds of the loan [20 years];

(B) principal and interest payments will begin not later than one year after completion of the project to be financed with the proceeds of the loan [any treatment works] and the loan [all loans] will be fully amortized not later than the expiration date of the term of the loan [20 years after completion of the treatment works];

(C) the recipient of a loan will establish a dedicated source of revenue for repayment of loans; and

(D) the revolving fund will be credited with all payments of principal of and interest on all loans;

(2) to buy or refinance the debt obligation of political subdivisions at or below market rates if the debt obligations were incurred after March 7, 1985;

(3) to guarantee or purchase insurance for political subdivisions if the guarantee or insurance would improve access to market credit or reduce interest rates;

(4) as a source of revenue or security for the payment of principal and interest on bonds issued by the state if the proceeds of the sale of those bonds will be deposited in the revolving fund;

(5) to provide loan guarantees to similar revolving funds established by municipalities or intermunicipal agencies;

(6) to earn interest on revolving fund accounts;

(7) for the reasonable costs of administering the revolving fund and conducting activities provided for by Title VI of the federal act, except that those amounts may not exceed the amount authorized under Title VI of the federal act;

(8) to provide financial assistance to persons for a nonpoint source pollution control or water quality control project under Section 319 of the federal act or Section 15.603(h) or (h-1) of this code [for an estuary management project under Section 320 of the federal act];

(9) for other purposes as provided by the federal act; and

(10) to provide linked deposits to eligible lending institutions for loans to persons for nonpoint source pollution control projects.

(c) A project financed through the revolving fund, other than a project authorized under Section 603(c)(1) or (11) of the federal act (33 U.S.C. Section 1383(c)(1) or (11)), must have a demonstrable impact on water quality control, as determined by the board. The board shall ensure that the amounts of any funds used for such a project are consistent with maintaining the perpetuity of the revolving fund.

SECTION 4. Section 17.0821(c), Water Code, is amended to read as follows:

(c) The board shall use the state water pollution control revolving fund in accordance with Section 15.604(a)(4) [15.604(4)] of this code and the Federal Water Pollution Control Act, Section 603(d)(4), as a source of revenue to be deposited in accordance with this chapter for the payment of principal and interest on water quality enhancement bonds issued by the state, the proceeds of which are deposited into the state water pollution control revolving fund.

SECTION 5. The Texas Water Development Board shall adopt rules under Section 15.603(h-1), Water Code, as added by this Act, not later than January 1, 2018.

SECTION 6. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017.